On July 14, SteelOrbis reported limited import scrap trading activity as the GST (Goods and Services Tax) subdued imports of scrap into India. Only small volumes of containerized shredded scrap were booked from the US at $310/mt CFR Nhava.
According to sources, offers for ex-US containerized shredded scrap were heard in the wide range of $290-310/mt CFR Nhava. A source noted that prices were lower than offers from Europe to India which were heard at $305-315/mt CFR Nhava. Yet Indian buyers reportedly remained out of the import scrap market due to poor domestic demand of finished steel products. A source noted that due to the lack of finished goods sales, partially because of the GST, but also due to seasonality, Indian mills are focusing on sourcing scrap domestically, and when possible, using alternatives such as competitively priced domestic DRI.
A separate source noted that it may not be until mid-August until the effects of the GST as well as other Indian government initiatives are better understood by buyers and sellers. A better understanding of procedures, real costs, and net tax effects is expected to facilitate a return of scrap dealers to the import market. A slight positive trend in demand for steel structural products in major cities over the week, for example, points to an upcoming recovery.